This invention relates to a method of electronic commerce employing an integrated network of computers, such as the World Wide Web. More particularly, a host assigns an identification tag to diverse items available from a plurality of distributors. A store builder electronically interfaces with the host to create a customized store providing a plurality of diverse items having similar identification tags.
The large integrated network of computers, referred to as the Internet, has had a significant impact on commerce. Electronic commerce (“e-commerce”) represents a significant source of traffic and customers for merchants. Consumer research has shown that among the reasons for consumers to shop on-line, that is via a network of computers, are convenience, selection and variety. Twenty-four hour access, superior product information and minimal travel time, combined with an almost infinite variety of products to choose from is a powerful incentive to try this medium.
The sale of goods and services over the Internet to households now represents about 5% of retail sales. It is expected that there will be an acceleration in e-commerce over the next several years. This growth will be driven primarily by a huge influx of on-line buyers as well as an increase in the frequency of purchases among experienced on-line buyers.
One traditional form of on-line shopping is destination oriented. A consumer desiring to purchase a specific product or service seeks out a retailer that carries the desired product or provides the desired service and goes directly to the retailer's web site to make a purchase. For example, a consumer may seek out Amazon.com if seeking to buy a book.
Another form of e-commerce is an affiliate program. A destination site, such as a web site drawn to a particular sporting team, directs consumers to retailers selling goods or services through a link to that retailer placed within the destination site. A sporting team destination site may provide electronic links to a seller of sneakers or autographed trading cards. The destination site, as an affiliate, typically receives a commission from resulting sales for referring traffic to the retailer. It is estimated that affiliate programs produce about 15% to 25% of an on-line retailer's traffic and sales volume.
The destination site, as affiliate, is at a disadvantage. Once the consumer is directed to the on-line retailer, the retailer typically requests sufficient information about the consumer that the retailer may contact the consumer directly regarding new product lines and/or sales thereby depriving the affiliate of additional commissions.
There remains a need for an on-line system of electronic commerce that readily directs the consumer to a wide variety of selected goods, yet allows the destination site to retain the customer relationship and to benefit from repeat purchases.